Summary
A 51-year-old military analyst, employed since 1995, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of failing to file federal tax returns from 1990-1996 and 1998-2004, and admitted to owing taxes for 1998-2005. The IRS filed tax liens against him in May 2002 for non-payment of federal taxes from 1990-1995 and for $2,430 for 1996, which was paid in full and released in August 2003. His wages were also garnished in 2001 for delinquent federal income taxes for two years.
While the applicant stated in August 2006 that he planned to file back taxes and pay his debt, he did not provide documentation for over $45,000 he claimed to have paid through 1997. He also paid a $588 credit card debt in October 2005 for an unused card.
Despite having a stable income, the applicant failed to demonstrate a good-faith effort to resolve his significant delinquent tax debts, which totaled approximately $40,000, and did not provide a formal repayment plan even after receiving the Statement of Reasons. Consequently, his security clearance was denied.
Why the applicant was denied
- The applicant failed to file federal income tax returns from 1990 to 1996 and from 1998 to 2004, establishing a history of not meeting financial obligations.
- He did not initiate a good-faith effort to resolve his tax debts even after receiving the Statement of Reasons (SOR).
- The applicant did not provide a formal plan to address his delinquent tax debts despite having the financial means to do so.
Conditions referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant's failure to file taxes spans multiple years.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a systematic plan to resolve his federal tax debts.
Key rule quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant’s access to classified information.”
Procedural posture
- SOR issuedJun 12, 2006
- Answer filedAug 18, 2006Notarized response admitting most allegations.
- Hearing heldJan 5, 2007Hearing rescheduled from December 4, 2006.
- Decision dateApr 30, 2007
Cite for
- Failure to File Federal Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Good-faith Effort to Resolve Tax Debts as a Basis for Denial Under Guideline E
- Insufficient Evidence of a Systematic Plan to Address Financial Obligations.